Switching business banks can seem daunting, especially if you have a longstanding relationship with your current bank. Despite this long relationship, you may feel like they might not be providing the best services or opportunities to grow your business. You might start to wonder if there’s another bank out there that would treat you the way you deserve to be treated. A new bank might offer higher yield accounts, credit and lending products, or more efficient and more customized service.
Whatever your reason, switching business banks shouldn’t be an obstacle in your business’ success. Taking action can be hard when you aren’t sure of the next step, so, to make things a little easier, here’s a list of steps you can take when you decide it’s time to switch business banks:
1) Open up that new bank account
Make that first deposit, enroll all your accounts online, download your bank’s mobile app, and secure all of your debit cards. When you open your new bank account, get acquainted with your account manager or customer service team. They’re there to assist you through the process! They’ll be your go-to for any customer service concerns that might come up in the future.
2) See if your old or new bank offers account switch services
With the right research and trial, you could also find a bank that provides switch services to make switching banks more manageable. Check if the bank you are moving to provides a “switch kit” for small businesses. Banks like Wells Fargo or Barclays offer switch kits, which take care of all necessary requirements you will need to transfer from one bank to another.
3) Update direct deposits connected to your old account
This is a very important step you shouldn’t overlook. Make a list of all direct deposits or inflows of money made to your old account. If you regularly receive direct deposits from your employer or customers via your old bank, make sure to inform depositors that you are switching banks. Stop all inflows of money into your old bank account before closing it.
4) Got anything regularly charging your old account? Update those too
Before cancelling your old bank account, be sure to transfer all automatic transactions you had set up from your old bank to your new one. This includes loan payments, automatic bill payments, and payroll (if you have employees).
Don’t forget to notify the vendors or service providers that your business interacts with, in case they expect to receive payments from your old account.
5) Get the money out of your old account via certified check
Ask your current bank if they can provide a certified check with your current total amount of funds so that you can deposit this into your new business account. Give yourself enough time because certified checks take about three days to clear. Instead of dipping into that contingency fund, be sure to have some cash on hand on the off chance you will need it.
6) Set up automatic payments with your new account
Once your certified check clears and all your funds are safely deposited into your new account, you can start setting up the automatic payments you had connected from your old account. If you have employees on payroll, talk to your account manager about setting up your new payroll account.
7) Keep important documents and transactions
Just because you’ve switched banks doesn’t mean you should get rid of all past bank documents or transaction slips. Keep hard copies or save a folder of all documentation from your old bank. You’ll need to hold onto your old transactions for your business. If possible, keep a hard copy and soft copy of all important documents and certificates from your old bank, in case you need them for future reference.
8) Keep images of important checks
Take note of important checks, in case you need them in the future. This process may take longer once you actually close your account, so be sure to ask for this beforehand.
If you need a little inspiration, check out the “27 Best Free Business Checking Accounts in 2018” according to Fundera. That said, you’ve most likely done your research on your chosen bank, which means you are ready to further grow your business with your new bank. Don’t forget to utilize all the services your current bank provides and don’t be shy about asking any questions you might have about certain bank products and services. Once you’ve gone through this basic run-through, you’re all set and ready to move on with your business.